Text Size

HOUSE CLEARS DRILLING, FRACKING BILLS: The House yesterday passed two bills aimed at speeding up oil and gas permitting on federal lands and potentially blocking Interior Department fracking regulations, the first two of a trio of energy bills the House is taking up before flying home for Thanksgiving. The fracking bill, from Rep. Bill Flores, stops Interior from enforcing federal fracking regulations in states that already have rules or guidance for fracking on the books — a broad provision that critics argued would let almost any state law, no matter how lax, supersede federal rules. Flores’s bill is also the first passed by House Republicans that delves into the growing debate on the booming practice of hydraulic fracturing. Both bills that passed yesterday garnered White House veto threats, and aren’t likely to go anywhere in the Senate.

Meanwhile, in the Senate: Sen. Orrin Hatch has introduced a similar fracking bill in the upper chamber. Sens. Mike Enzi, John Barrasso and Jim Risch are also sponsors. Text: http://1.usa.gov/I0gMdv

HOUSE TURNS TO GAS PIPELINES BILL: Now the House turns to Rep. Mike Pompeo’s bill aimed at expediting permitting of natural gas pipelines. H.R 1900 would give FERC 12 months to make a decision on pre-filed pipeline applications; other agencies involved in permitting would get 90 days after FERC completes its environmental review to object. If no decision is reached by those deadlines, the pipeline application would be approved. Pompeo maintains the legislation, which also enjoys support from many in the industry, is not just a “Republican messaging bill,” noting that Democrats Jim Matheson and John Barrow voted for it in committee.

— Nonetheless, the bill drew a veto threat from the White House this week, which argued the deadlines could spur conflicts and confusion with existing law and may "force agencies to make decisions based on incomplete information." And while FERC Commissioner Philip Moeller told lawmakers his agency could meet the 12-month deadline (assuming the clock started once an application was complete), Jeff Wright, director of FERC's Office of Energy Projects, reportedly said last month that the 90-day deadline for non-FERC agencies is “draconian” and will push officials into a corner that could make them deny applications.

Wyden may offer path through Senate: House Republicans and Senate Democrats don’t talk often, but Pompeo might have the attention of one key senator across the Capitol: Energy and Natural Resources Chairman Ron Wyden. In July, Wyden said one of his major goals is to "speed up pipeline development while also plugging the methane leaks” — and supporters of Pompeo’s bill say that has opened the door for dialogue. Pompeo told reporters yesterday that he might be open to adding language addressing rogue methane leaks — a major source of heartburn for climate activists since unburned methane is a powerful greenhouse gas. “We’ll work to figure out precisely what it is Sen. Wyden wants to do with respect to methane, how to handle it, if the things he’s asking for make sense, if the industry would find that kind of a provision acceptable,” Pompeo said. “I think Sen. Wyden is someone who would look at this and say, ‘That’s good government, we ought to do that, this isn’t going to present increased environmental risk.’”

Don’t look for any movement soon: There are no plans for a Senate hearing right now, Wyden spokeswoman Samantha Offerdahl told ME. “Sen. Wyden is still working to find ways to incentivize new and better pipes that reduce overall methane emissions,” she said. “He continues to look for ways to bring industry and environmental groups together on a proposal. Those efforts will likely continue through the end of the year.”

But first, the amendments: Lawmakers will get a chance to feel out support for methane leak reduction legislation when the chamber votes on an amendment from Rep. Paul Tonko requiring pipeline applications to explain how developers will minimize methane leaks. The House will also vote on four other Democratic amendments that would replace the entire bill with language directing GAO to study the extent of expected permitting delays by FERC and other agencies; push back deadlines until FERC has considered state or local objections to a project; remove the non-FERC agency deadline; and delay implementation of the bill as long as the sequester is in place. Amendment texts: http://1.usa.gov/IgTWOm

** At Philips, our mission is to create a company that makes a difference to you. We believe the way to achieve this is through innovation — making cities safer and people healthier. Others may focus on what innovation does; we focus on what it does for you. Learn more: http://www.usa.philips.com/

TODAY’S FERC MEETING: FERC’s monthly meeting today is fairly packed, not least of which because of the release of a fiscal 2013 enforcement actions report. The first of a half-dozen rulemakings before the commission today will make progress on a proposal to modify grid interconnection costs and procedures for small (20 megawatts or less) power producers that the solar industry argued had grandfathered in unfair regulatory hurdles for them. Another item on the panel’s agenda may move on a draft rule released this spring proposed by NERC on so-called Version 5 Critical Infrastructure Protection Reliability Standards, which includes 12 requirements, such as incident response reporting.

FERC will also consider a proposal by NERC to scrap 34 reliability requirements that the organization felt did little to protect the bulk power system or were redundant with other standards. Meanwhile, the agency leadership could make a call on whether it will agree to a request from the Bonneville Power Administration — which doesn’t fall under FERC jurisdiction— that their tariff revisions be recognized by FERC and that BPA be given reciprocity status. The meeting starts at 10 a.m. at FERC HQ, 888 First St. NE. Live webcast: http://1.usa.gov/y00BJo

— President’s Council of Advisors on Science and Technology will also meet this morning. On the agenda: Cybersecurity and education information technology. Details and webcast: http://1.usa.gov/csHyeQ

SCIENCE JOURNAL UPBEAT ABOUT WARSAW DESPITE SETBACKS: There's been a lot of bad news for climate activists surrounding the UN talks in Warsaw, including Japan scaling back its emissions reduction goals and Australia preparing to repeal a carbon tax — but the journal Nature’s editorial board is remaining hopeful. “Reducing emissions will be neither easy nor free, particularly given the need to expand basic energy services in poor countries. … The temptation to abandon the effort and drift back into business-as-usual will always be there. The goal for Warsaw this week is not an agreement, but a viable roadmap to an agreement. Surely that much can be achieved.” More: http://bit.ly/1auHDci

DODD-FRANK UPS RISKS FROM ENERGY PRICE VOLATILITY — FORMER DOE CHIEF: Changes to swaps and futures hedging used by the energy industry and others under the 2010 Dodd-Frank bill means the market faces greater risks thanks to inherent price volatility, former Energy Secretary Spencer Abraham and Digital Power Capital CEO Mark Mills write in a new white paper. “The use of swaps and futures hedging by energy businesses had nothing to do with triggering the Great Recession,” they write. “The fact that energy businesses use swaps is as relevant to global financial stability as gasoline use for lawnmowers is relevant to global aviation fuel supply. Less than 0.3% of the total swaps market involves energy transactions. Yet, Dodd-Frank disrupts and puts at risk long-standing and effective use of hedging and swaps to protect both businesses and consumers from energy volatility.” More: http://bit.ly/1cH4WOA

INDUSTRIAL GAS USERS SAY RESEARCH PROVES LNG EXPORTS BAD FOR ECONOMY: America’s Energy Advantage, a coalition of major industrial natural gas consumers and the American Public Gas Association that calls for caution in approving permits for LNG exports to non-FTA nations, has a memo out today summarizing studies on LNG exports that concludes “that excessive LNG exports will have profoundly negative effects on the U.S. economy.” Read: http://bit.ly/1jo06IJ

THEY KNEW THEM ALL FROM BOSTON TO DUBUQUE: Democrats in Congress are recruiting a varsity squad of sports officials to help make the case for action on climate change. Rep. Henry Waxman and Sen. Sheldon Whitehouse will meet today with officials from most of the country’s major sports leagues, including Major League Baseball, the National Basketball Association, the National Hockey League and the National Football League. Andrew Restuccia has more: http://politi.co/1cHBRmq

TIP-A-CANOE AND McCARTHY TOO: EPA chief Gina McCarthy is pulling her paddle out for a trip up the Los Angeles River today with Mayor Eric Garcetti. Garcetti is trying to get the federal government to support a $1 billion project to restore a stretch of the river, but he's paddling upstream thanks in part to spending cuts pushed by House Republicans, the Los Angeles Times notes: http://lat.ms/1bS31so

The real question: Is there an “IOU” note where Sally Jewell’s kayak used to be?

QUICK HITS

— AFP has the latest on tensions between "rich and poor countries" at the Warsaw climate talks: http://bit.ly/1cGKSMj

— The AP has more on yesterday's arguments on fracking fluid disclosure before the Wyoming Supreme Court: http://bit.ly/1e0scIG

— A proposal requiring state legislators to approve any certain mines in the Bristol Bay area (think Pebble Mine) looks like it will be on the ballot next fall. AP: http://bit.ly/1fkppOj

THAT’S ALL FOR ME. Have a nice day.

** At Philips, our mission is to create a company that makes a difference to you. We believe the way to achieve this is through innovation — making cities safer and people healthier. Others may focus on what innovation does; we focus on what it does for you. Learn more: http://www.usa.philips.com/